Hyundai Motors funds Grab to explore new business growth avenues

The Hyundai Motor Company, a reputed automotive firm headquartered in South Korea, has reportedly made huge investments in Grab, a Singapore-based firm offering car-sharing services to a dedicated consumer base. As per sources, Hyundai plans to expand in the car-sharing business and will assist Grab to secure a competitive edge with Uber in Southeast Asia. Firms such as Hyundai have apparently joined the likes of Softbank, Toyota Tsusho, and Didi Chuxing that had also invested in the current fundraising move by Grab. The key officials of both the firms have stated that they will work together on a mobility service platform that uses Hyundai vehicle models such as Ioniq Electric.

According to industry analysts, the strategic alliance with Grab will provide Hyundai an insight into the current trends prevalent in car sharing industry. With the former operating its car sharing business across eight Southeast Asian regions, it is anticipated that the decision to form a partnership will benefit both the firms. Experts are of the view that the investment will support Hyundai in providing its own mobility services across the globally emerging ride hailing business.

As per reliable sources, earlier in January 2017, Hyundai had entered into collaboration with WaiveCar for introducing electric vehicle car sharing activities financed via advertisements. The firm also launched its first electric car sharing services in Holland starting with hundred IONIQ electric vehicle service operations.

Reports have stated that Hyundai’s interest in Southeast Asian region has increased as a result of the diplomatic disputes between China and South Korea, which has adversely impacted the growth prospects of the South Korean firms across the Chinese automobile sector. Industry analysts have claimed that this is not the first move by the firm to set foot into a new business, as earlier this month, Hyundai had collaborated with Aurora, a Silicon Valley startup firm, for manufacturing a new technology for self-driving vehicles.